Capital Gains Tax on Sale of Personal Property in Puerto Rico (Non Resident)

[irishbear44]

My mother sold a vacation condo in Puerto Rico and had to pay non resident taxes. How do I report this in Turbo Tax? I believe she qualifies for a Foreign Tax Credit (or deduction) but not sure about exactly to approach this. 

[DaveF1006 · Accepted solution]

Yes, you may receive a Foreign Tax Credit for the tax paid to Puerto Rico. Here is how to get started.

1. Open Turbo Tax
2. Go to federal>deductions and credits>estimate and other taxes paid
3. Foreign taxes >start
4. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
5. Answer the questions in the next screens until you reach a screen that talks about income type. This will be the general category of income. if you have more than one country, you will add that later.
6. Next screen is where you add the country your foreign income was earned in. 
7. Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
8. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2022 or you won't get the foreign tax credit and will show up as an error in your return